Petroleum Executive of the Year, Emilio Lozoya Austin presents his keynote
-
Upload
energy-intelligence -
Category
Business
-
view
167 -
download
0
Transcript of Petroleum Executive of the Year, Emilio Lozoya Austin presents his keynote
Petroleum Executive of the YearKeynote Address
Emilio Lozoya Austin - Chief Executive Officer Pemex
CHAIR Thomas Wallin - Editor-in-Chief Energy Intelligence
PERSPECTIVES AFTER ENERGY REFORM
Oil & Money - October 2014
Maximize wealthfrom
hydrocarbons
Energyrevolution in
North America
Acceleratingtechnological
change
Different geologyin the fields of the
future
Energy policy forcompetitiveness Transform the oil
and gas industryTransform Pemex
Energy Reform is Mexico’s answer to the challenges of the 21st century
A strongerPemex
New players
PotentialalliancesbetweenPemex and others
Energy reform faces challenges through:
5000
25000
45000
65000
Base CasePotential
25,000
62,000
CAPEXAnnual average 2014-2025 (mmusd)
Energy reform faces challenges through:
1000
2000
3000
4000
5000
Base CasePotential
2,7944,083
CRUDE OILAnnual average 2014-2025 (mbd)
Energy reform poses a major challenge to Pemex:
• Experience• Knowledge• Skills• Accumulated assets• Competitive advantages
Pemex is treated like a firm
INITIAL ASSETS ENERGY REFORM EXPECTED RESULT
Pemex is able to compete succesfully
COMPETITION
WILL PEMEX BE COMPETITIVE?
PEMEX:A potentially
competitive firm
New fiscal regime
New corporate
Managerialautonomy
New regime for
internalcontrol
Strategicalliances
Newcompensation
policy
Budgetaryautonomy
New procurement
regime
governance
New
Le
gal F
ram
ewo
rk
Round zero
Pension fundrestructuring
CHANGE IN CORPORATE STRUCTURE
CULTURAL CHANGE
WILL PEMEX BE COMPETITIVE?
CH
AN
GE
IN
STR
ATE
GY
Transforming Pemex: strategy
CHANGE IN STRATEGIC VISION
LEADING COMPETITOR IN EACH
RELEVANT MARKET
- Choice of markets
- Choice of partners
- Choice of business model in each market
Transforming Pemex: new corporate structure
•Optimal output
• Sustainable growth of reserves
Exploration and Production:
•Operational efficiency for competitiveness
•Focused growth in selected marketsDownstream:
•Cogeneration
•Drilling services
•LogisticsNew SPVs:
Transforming Pemex: results oriented management
Support processes
- Security, reliability and sustainability
- Competitive procurement
- Cutting edge technology
- Optimal project execution
- Talent management
- Financial and administrative efficiency
Transforming Pemex: entrepreneurial governance
Governance
- Best practices in corporate government
- Business process management
- Business like internal control and risk management
Transforming Pemex: corporate culture CULTURAL CHANGE
Values, attitudes and behavior for competitiveness
Strengthen leadership and develop human capital
- Meritocratic compensation policy
- Career plans
- Pemex’s Corporate University
- Continuous acquisition of skills and competencies
Perspectives for Mexican oil and gas after energy reformCompetitive
Pemex, operating as a
corporation
New players, in association or competing with Pemex
Substantial increase in
investment.
Optimal use of hydrocarbon
resources
Round Zero results
Reserves and prospective resources allocated to Pemex
Volume (mmbcoe) Granted(% of total)
Area granted (km2) Reserves/Production
(years)
Reserves (2P) 20,589 83 17,010 15.5
Prospective resources 23,447 21 72,897 5.0*
Conventional 18,222 35 64,489
Non-conventional 5,225 9 8,408
* Estimated on the basis of potential reserves to be incorporated
PEMEX will be able to produce, at least, 2.5 mmbdover the next 20.5 years
New Round Zero related investment
1 – Shift from
allocations to
contracts
11,380
32,780
1,083
3,439
569
1,639
Reserve-3P
mmbcoe
Reserve-2P
mmbcoe
Area
Km2
11,440
8,626
2 – “Farm outs”
(High priority)
First stage
(11 contracts)
Second stage
(11 contracts)
32,2952,6641,556612
Total 76,4557,1863,76420,678
CAPEX
mmdlls
Investment opportunities/projects
Mega projects(above $1,000 mm USD)
Projects(below $1,000 mm
USD)
Energy Infrastructure
• Deep and ultra deep water
• Shale gas/oil*
1. Gas pipes
2. Reconfiguration of refineries
1. Gas Pipes
2. Transport pipes
3. Logistic projects
4. Marine terminals
5. Platforms
1. Co-generation
2. Mature fields
3. Shallow water
(heavy crudes)
Other projects
1
3 4
2
5
*Shale considered as one project; may be divided into smaller projects
Reserves and prospective resources in Mexico
Unconventionals (shale oil and gas)
BasinCummu
lative Prod.
Reserves Prospective resources
1P(90%)
2P(50%)
3P(10%)
Conv. Unconv.
Southeast 46.5 11.8 17.0 23.4 15.8
TampicoMisantla
6.5 1.1 6.6 15.7 2.3 34.8
Burgos 2.4 0.3 0.5 0.7 3.2 10.8
Veracruz 0.8 0.2 0.2 0.3 1.4 0.6
Sabinas 0.1 0.0 0.0 0.1 0.4 14.0
Deepwater
0.0 0.1 0.4 2.0 27.8
YucatánPlatform
1.7
Total 56.2 13.4 24.8 42.2 52.6 60.2
Mm of barrels of oil equivalentGas and oil basins
Exploration projectsDevelopment and production projects
28.4
E & P opportunities more than double Pemex’s present CAPEX
1000
2000
3000
4000
5000
BaselineFull Potential
2,794 4,083
OILAnnual average 2014-2025 (mbd)
5000
7000
9000
BaselineFull Potential
6,0819,079
GASAnnual average 2014-2025 (mmcfd)
5000
25000
45000
65000
BaselineFull Potential
$24,329
$62,267
INVESTMENTAnnual average 2014-2025
(mmusd)
Transport pipes: expansion projects
Gaspipes: expansion projects
National gaspipes Length (km)Investment
(MDD)
Los Ramones 842 2,535
1 Ramones Phase I 114 688
2 Ramones Phase II 728 1,847
North-East 1,944 2,411
3El Encino (Chih.) -
Topolobampo (Sin.)574 1,008
4 Sásabe - Guaymas 544 569
5 Guaymas - El Oro 364 429
6 El Oro - Mazatlán 462 405
Other projects 1,032 1,304
7 Tamazunchale 229 468
8 Zacatecas 172 70
9 Morelos 172 246
10 Mayakán 76 125
11 Chihuahua** 383 395
Total 3,818 6,250
International gaspipes Length (km)Investment
(MDD)
12 Agua Dulce -Frontera 200 828
13 Tucson - Sásabe 97 208
Total 297 1,036
** Chihuahua gaspipe started operations on July 2013 * Includes projects from the Comprehensive Strategy, and the new 222 km from Jáltipan-Salina Cruz gaspipe.
2013 gaspipes
Comprehensive strategy
gaspipes
12
13
11
4
5 3
6
7
28
1
9
10
SNG length (2013): 11,342 km
Total investment: 7,454 MDD
SNG new length : 15,160 km*
Oil & gas as an engine for growth
Investment in oil & gas equals 2% of GDP. Energy Reform should push that to 4% in a few years
INCREASED
GROWTH
Cheaper, cleaner and more abundantenergy: increased competitivity
Increased opportunities for the private sector
National Content= 25% (will rise to 35%)